20230911Application.pdf

MEGAN GOICOECHEA ALLEN
Corporate Counsel
[e-mail]

September 8, 2023

Jan Noriyuki, Secretary
Idaho Public Utilities Commission
11331 W. Chinden Boulevard
Building 8, Suite 201-A
Boise, Idaho 83714

Re: Case No. IPC-E-23-21
Application for Approval of Amendments to Agreements for Delivery of Power
and Energy with King Hill Irrigation District

Dear Ms. Noriyuki:

Attached for electronic filing is Idaho Power Company’s Application in the above-
entitled matter.

If you have any questions about the attached documents, please do not hesitate
to contact me.

Sincerely,

Megan Goicoechea Allen
MGA:sg
Enclosures
RECEIVED
2023 SEPTEMBER 8, 2023 3:43PM
IDAHO PUBLIC
UTILITIES COMMISSION

APPLICATION – 1
DONOVAN E. WALKER (ISB No. 5921)
MEGAN GOICOECHEA ALLEN (ISB No. 7623)
Idaho Power Company
1221 West Idaho Street (83702)
P.O. Box 70
Boise, Idaho 83707
Telephone: [phone]
Facsimile: [phone]
[e-mail]
[e-mail]

Attorneys for Idaho Power Company

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE APPLICATION
OF IDAHO POWER COMPANY FOR
APPROVAL OF AMENDMENTS TO
AGREEMENTS FOR DELIVERY OF
POWER AND ENERGY WITH KING HILL
IRRIGATION DISTRICT
)
)
)
)
)
)
)

CASE NO. IPC-E-23-21

APPLICATION FOR APPROVAL
OF AMENDMENTS TO 1979
AGREEMENTS

Idaho Power Company (“Idaho Power” or “Company”), in accordance with Idaho
Public Utilities Commission Rule of Procedure1 52, hereby respectfully submits this
Application to the Idaho Public Utilities Commission (“Commission”) pertaining to
amending two related agreements for the delivery of power and energy between Idaho
Power and King Hill Irrigation District (“District” or “KHID”) that were entered in February
and April of 1979 (“1979 Agreements”). More specifically, the Company is seeking an
order approving the Second Amendment to the February Agreement dated July 31, 2023,
and the First Amendment to the April Agreement dated July 31, 2023, which were entered
by the Company and KHID (jointly, “Parties”) to incorporate an additional river pumping

1 Hereinafter cited as RP.

APPLICATION – 2
station under the terms of the 1979 Agreements. Though the new pumping station was
not originally contemplated by the Parties, its addition does not impact the amount of the
total credit provided by Idaho Power in exchange for use of the District’s water for power
generation purposes, merely how it is allocated among the District’s accounts, and the
Parties believe the changes are consistent with the general intent of the 1979
Agreements.
In support of this Application, Idaho Power represents as follows:
I. BACKGROUND
1. Formed over a century ago, King Hill Irrigation District has, since its
inception and continuing today, operated irrigation canals, ditches, and other structures
to divert and distribute water for irrigation. Originally, the District’s irrigation system relied
on an inverted siphon to convey water from the Malad River across the Snake River,
where it was then transported via the District’s canal system to irrigate over 10,000 acres
within its service boundary.2
2. After the inverted siphon was irreparably damaged in 1978, the District
decided to replace the gravity flow irrigation system with river pumping stations that would
deliver water from the Snake River into the canal and laterals of the District. Around this
time, Idaho Power and KHID agreed to an arrangement that, in pertinent part, allowed
Idaho Power the use of the District’s water for power generation purposes in exchange
for the Company paying as compensation an initial non-refundable lump sum amount and
providing an annual credit to be applied to District’s irrigation accounts for the river

2 See In the Matter of the Application for Approval of Contract between King Hill Irrigation District and
Idaho Power Company, Case No. U-1006-147, Order No. 14439 at 8 (Feb. 15, 1979) (noting that 10,650
acres were presently under irrigation). Currently, KHID delivers and distributes water for irrigation to over
11,500 acres.

APPLICATION – 3
pumping stations, which was intended to help offset the electrical cost of operating the
new pumping plants.
3. As outlined in Commission Order No. 14439, the agreement for Idaho
Power to use the District’s water for power generation purposes results in additional
generation of 15,776 megawatt hours through its Lower Malad plant and an additional
6,242 megawatt hours through its Bliss power plant resulting in a total energy generation
gain of 22,018 megawatt hours under median water conditions. The additional
hydropower generation gained by Idaho Power through use of the District’s water is
accomplished with the Company’s existing facilities and does not require additional
capital investment.3 Idaho Power’s customers are therefore benefitting from the additional
low-cost hydropower generation without the impacts of additional capital expenditures.
The February Agreement
4. More specifically, Idaho Power and KHID entered into an Agreement dated
February 5, 1979 (“February Agreement”), pursuant to which the District granted
Company the right to use its water for power generation purposes at the Company’s
Lower Malad and Bliss power plants, as well as any future hydro plants in the vicinity, and
in exchange, the Company made an initial non-refundable lump sum payment and agreed
to provide an annual credit to the District’s irrigation accounts established for the to-be-
constructed river pumping stations. The annual credit amount represents the value of
14,000,000 kilowatt hours (“Credit Amount”), which was in addition to the one time lump
sum payment of $1,000,000.

3 See In the Matter of the Application for Approval of Contract between King Hill Irrigation District and
Idaho Power Company, Case No. U-1006-147, Order No. 14439 at 5-6, Paragraph VIII (Feb. 15, 1979).

APPLICATION – 4
5. While the initial Credit Amount was $185,700.00, the February Agreement
also provided that, in the event the Commission orders an adjustment of the applicable
rate schedule, the Credit Amount would be adjusted accordingly and increased or
decreased by that percentage which represents the average for all of the Company’s
customers under said rate schedule. The Credit Amount is allocated among the District’s
river pumping stations pursuant to the percentage that each bears to their total combined
horsepower.
6. In order to restore its irrigation system to operation, the District intended to
build four, possibly five, river pumping stations; more specifically, the District was
considering whether it could substantially reduce the cost of restoring its system by
constructing a river pumping station to serve only that land owned by Eugene and Aurora
Ascuena and the potential fifth river pumping station contemplated in the February
Agreement related to this option.
7. The Parties filed a Joint Application with the Commission seeking approval
of the terms and conditions of the February Agreement, including the proposed
accounting treatment of the lump sum payment and annual Credit Amount, which the
Commission granted in Order No. 14439, issued on February 15, 1979.
8. After entering into the February Agreement, the District constructed four
pumping stations; it has not to date constructed the potential fifth pumping station
contemplated in the February Agreement, which was intended to only serve land owned
by Eugene and Aurora Ascuena pursuant to the terms of the February Agreement.

APPLICATION – 5
The April Agreement
9. Subsequently, the Parties entered into another Agreement dated April 11,
1979 (“April Agreement”), to further specify the terms and conditions of Idaho Power
supplying electric service to the pumping stations identified in the February Agreement,
which is fully incorporated by reference into the April Agreement.
10. The April Agreement, in part, identifies the points of delivery associated with
the pumping stations along with the horsepower, voltage, location, account number, and
allocation of Credit Amount between the pumping accounts. In addition, it limited the total
amount of horsepower (“hp”) of the river pumping stations to be supplied electric power
by the Company to 10,000 hp.
First Amendment to the February Agreement
11. As contemplated in the 1979 Agreements, the Company has allocated the
Credit Amount, as adjusted pursuant to the February Agreement, annually among the
irrigation accounts associated with the four pumping stations identified by the District as
the points of delivery based on the percentage that each pumping station contributed to
the total combined horsepower.
12. In 1988, the Parties entered into an Amendment to the February Agreement
(“First Amendment to February Agreement”) to resolve a difference of opinion regarding
whether the Credit Amount, once established for an irrigation season, should later be
adjusted to reflect adjustments in Idaho's rates or charges in that rate schedule applicable
to District's river pumping stations which become effective during the irrigation season.
The Parties agreed to amend the February Agreement to apply a pro rata formula in
allocating adjustments in Idaho’s rates or charges in that rate scheduled applicable to the

APPLICATION – 6
District’s river pumping stations effective during the irrigation season. The First
Amendment to the February Agreement added a provision to provide for this pro rata
adjustment but did not otherwise change the obligations of the Parties.
13. At the time the Parties entered into the February Agreement in 1979, the
Credit Amount was $185,700.00 and, pursuant to the terms of the February Agreement
and First Amendment to February Agreement, it has been adjusted over the years by the
percentage representing the average rate changes applicable to all of the Company’s
irrigation customers within its Idaho service area and an addendum executed by the
Parties to reflect the change in the Credit Amount.
II. THE PROPOSED AMENDMENTS
14. Though the District has not to date pursued the fifth pumping station option
identified in the February Agreement specifically to serve the Ascuena’s property, it has
now constructed a different pumping station (the “Hammett Station”). Though the
Hammett Station is different than the potential fifth pumping station contemplated in the
February Agreement, the District has requested that Idaho Power include the account
associated with the Hammett Station in its annual allocation of the Credit Amount going
forward.
15. The Company has evaluated the District’s construction plans for the
Hammett Station and confirmed that including the Hammett Station irrigation account in
the Credit Amount allocation does not impact any other rights, obligations, or
requirements under the February Agreement, as amended, or the April Agreement, and
as a result of these circumstances, subject to approval of the Commission, the Parties
have entered into the Second Amendment to the February Agreement and the First

APPLICATION – 7
Amendment to the April Agreement to include the Hammett Station as more fully
described below.4
Second Amendment to the February Agreement
16. The February Agreement described the District’s plan to replace its inverted
siphon irrigation system by constructing “five (5) river pumping stations and related
facilities, or construct only four (4) river pumping stations,” if the District decided not to
construct a river pumping station specifically to serve the Ascuena’s property. With the
addition of another pumping station, the Hammett Station, the Second Amendment to the
February Amendment (“Second Amendment”) revises certain recitals and provisions of
the February Agreement, as amended, to provide for six, possibly five, river pumping
stations.
17. The Second Amendment provides for modifying all references that describe
the potential number of river pumping stations to-be-constructed by the District to
incorporate an additional pumping station as follows:
 Replacing the existing references identifying “five (5)” as the maximum
potential number of river pumping stations with “six (6)” and those listing
“four (4)” as the baseline number of river pumping stations with “five (5).”
 For example, the Second Amendment incorporates the following revisions
into the fifth recital of the February Amendment (new language is
underlined, and deleted language uses strikethrough):

4 Though the District has not to date constructed the fifth pumping station contemplated in the February
Agreement to serve the Ascuena’s property, the amendments provide the Hammett Station in addition to,
not in place of, this option to remain consistent with the original Agreement and avoid potentially impacting
future plans, if any.

APPLICATION – 8
WHEREAS, the District has determined that its most satisfactory
alternative for restoring its irrigation system to operation is to
discontinue use of the Head End Siphon and to construct five (5) six
(6) river pumping stations and related facilities, or construct only four
(4) five (5) river pumping stations, if the District decides not to
construct a river pumping station specifically to serve only that land
owned by Eugene and Aurora Ascuena, husband and wife,
(hereinafter referred to as the “Ascuenas”) and Idaho. Said river
pumping stations, along with related facilities, shall be constructed to
pump water from the Snake River into the canal and laterals of the
District;
 In addition, said modifications were incorporated via the Second
Amendment into the fourteenth recital of the February Agreement; Part II,
Paragraph 2 of the February Agreement, as amended by the First
Amendment to the February Agreement; and Part III, Paragraphs 1, 3, and
13 of the February Agreement.
First Amendment to the April Agreement
18. In conjunction with the Second Amendment to the February Agreement, the
Parties are simultaneously amending the April Agreement (“First Amendment to the April
Agreement”) to incorporate the addition of the Hammett Station and the resulting minor
increase in total combined horsepower of the District’s river pumping stations and to
update details for all the pumping stations.
19. The First Amendment to the April Agreement updates the description of the
river pumping stations that serve as the points of delivery under the agreements to add
the Hammett Station and set forth current details for each of the five existing pumps
including location, horsepower, voltage, account number, and allocation of Credit Amount
between the pumping accounts based on each pump’s contribution to the total combined
horsepower of 10,100.

APPLICATION – 9
20. Additionally, the First Amendment to the April Agreement provides for
modifying other references that limit the amount of electric power the Company is to
provide to “10,000 horsepower” including:
 Revisions to Paragraph 3(a) (new language is underlined, and deleted
language uses strikethrough):
All electric power and energy, up to10,000 10,100 horsepower, shall
be supplied and billed in accordance with the Company’s applicable
irrigation pumping service rate schedule.

 Revisions to Paragraph 5 (new language is underlined, and deleted
language uses strikethrough):
During the term of this Agreement and any renewals and extensions
hereof, the Customer agrees to and will purchase from Company all
electric power and energy required for its operations at the above
locations specified, such power and energy up to the amount
hereinafter set forth in pParagraph 3(b), up to 10,100 horsepower, to
be supplied and paid for as set forth in pParagraph 3(a) above. It is
mutually understood and agreed that the amount of electric power
the Company is to provide under this contract Agreement is
expressly limited to the amount of horsepower as set forth in
paragraph 3(b)10,100 horsepower.

Consideration of the Proposed Amendments
21. Copies of the February and April 1979 Agreements and the First
Amendment to the February Agreement are attached to this Application as Attachments
1 through 3. In addition, the Second Amendment to the February Agreement dated July
31, 2023, and the First Amendment to the April Agreement dated July 31, 2023, are
attached to this Application as Attachments 4 and 5, respectively, and are subject to the
Commission’s approval.

APPLICATION – 10
22. As explained above, the amendments incorporate updates associated with
the addition of another pumping station not originally contemplated by the Parties, the
Hammett Station, in order to include this additional irrigation account in the Credit Amount
allocation. The amendments do not impact the basis or value of the total, unallocated
Credit Amount or how it is treated for accounting purposes, and the Parties believe the
changes are consistent with the general intent of the original February Agreement as
approved by the Commission. As such, the Parties believe Commission approval of the
amendments would be prudent and appropriate.
III. MODIFIED PROCEDURE
23. Idaho Power believes that a technical hearing is not necessary to consider
the issues presented herein and respectfully requests that this Application be processed
under Modified Procedure, i.e., by written submissions rather than by hearing. RP 201,
et seq. If, however, the Commission determines that a technical hearing is required, the
Company stands ready to prepare and present its testimony in such hearing.
IV. COMMUNICATIONS AND SERVICE OF PLEADINGS
24. Communications and service of pleadings, exhibits, orders, and other
documents relating to this proceeding should be sent to the following:
Donovan E. Walker Tim Tatum
Megan Goicoechea Allen Connie Aschenbrenner
IPC Dockets Idaho Power Company
1221 West Idaho Street (83702) 1221 West Idaho Street (83702)
P.O. Box 70 P.O. Box 70
Boise, Idaho 83707 Boise, Idaho 83707
[e-mail] [e-mail]
[e-mail] [e-mail]
[e-mail]

APPLICATION – 11
V. REQUEST FOR RELIEF
25. Idaho Power respectfully requests that the Commission issue an order
approving both the Second Amendment to the February Agreement and the First
Amendment to the April Agreement submitted herewith without change or condition.
Respectfully submitted this 8th day of September 2023.

MEGAN GOICOECHEA ALLEN
Attorney for Idaho Power Company

APPLICATION – 12
CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on the 8th day of September 2023, I served a true and
correct Idaho Power Company’s Application upon the following named parties by the
method indicated below, and addressed to the following:

Commission Staff
Dayn Hardie
Deputy Attorney General
Idaho Public Utilities Commission
11331 W. Chinden Blvd., Bldg No. 8
Suite 201-A (83714)
PO Box 83720
Boise, ID 83720-0074

Hand Delivered
U.S. Mail
Overnight Mail
FAX
FTP Site
X Email [e-mail]

Courtesy Copy sent to:

Jeffrey Blanksma Jr.
Chairman, King Hill Irrigation District
P.O. Box 993
Glenns Ferry, ID 83623
Via Email: [e-mail]

Stacy Gust, Regulatory Administrative
Assistant

BEFORE THE
IDAHO PUBLIC UTILITIES COMMISSION
CASE NO. IPC-E-23-21
IDAHO POWER COMPANY
ATTACHMENT 1
King Hill Irrigation District Agreement
February 1979
5
AGREEMENT
5^THIS AGREEMENT,Made this day of February,1979,
between KING HILL IRRIGATION DISTRICT (hereinafter referred to as
the "District"),organized,existing and operating under the laws
r*'
of the State of Idaho,and IDAHO POWER COMPANY (hereinafter
referred to as "Idaho"),a corporation,organized and existing
under and by virtue of the laws of the State of Maine,duly
qualified and doing business in the State of Idaho.sin
WITNESSETH:
WHEREAS,the District is the successor in interest to the
King Hill Irrigation and Power Company,and Idaho is successor in
interest to the Malad Power Company;and,
WHEREAS,said predecessors in interest entered into an
agreement dated the v9th day of February,1909,relating to,among
other things,a siphon (now commonly referred to as the Head
Siphon and hereinafter referred to as the "Head End Siphon");and
WHEREAS,the District owns and operates said Head End!
Siphon,which crosses the Snake River from Lot 2 to Lot 3,
Section 27,Township 6 South,Range 13 East,Boise Meridian,
Gooding County,Idaho;and,
WHEREAS ,the Head End Siphon was damaged and rendered
inoperative during the 1978 irrigation season by movement of the
land mass on the West bank of the Snake River on which the support
bridge and the outlet end of the Siphon are located;and ,
WHEREAS,the District has determined that its most
satisfactory alternative for restoring its irrigation system to
operation is to discontinue use of the Head End Siphon and to
construct five (5)river ycanping stations and related facilities,
¦n /"'r-i nnMoxim
or construct only four (4)river pumping stations,if the District
decides not to construct a river pumping station specifically to
serve only that land owned by Eugene and Aurora Ascuena,husband
and wife,(hereinafter referred to as the "Ascuenas ")and Idaho.
Said river pumping stations,along with related facilities,shall
be constructed to pump water from the Snake River into the canal
and laterals of the District;and,
WHEREAS,The District,on the date hereof,is in the
process of determining whether it can substantially reduce the
cost of restoring its irrigation system,by constructing a river
pumping station,specifically to serve only that land owned by
---
the Ascuenas and Idaho;and,
WHEREAS,Idaho has made application to the Idaho Public
Utilities Commission for a Certificate of Convenience and Necessity
I
and plans on making application to the Federal Energy Regulatory
Commission for a License to construct the A J Wiley Project,the
reservoir pool from which would extend upstream beyond the current
site of the Head End Siphon requiring the removal or raising of
¦¦
¦
said Head End Siphon;and,
WHEREAS,the parties hereto recognize the rights,duties,
obligations and limitations of the February 9,1909 Agreement'V.
heretofore referred to;and,
WHEREAS,the District's urgent concern for restoring its
irrigation system to operation,as soon as possible,and Idaho's
;I
plans to make application to the various Federal and State regula
tory agencies for permission to construct the A J Wiley Project,
which construction would require the removal or raising of the Head
End Siphon as currently located,are conditions which render it
AGREEMENT -2 .
r
appropriate Cor Llie parties to resoJ ve certain ma tiers at this Lime,
rather than awaiting final action on those applications made by
Idaho with respect to the A J Wiley Project;and,
WHEREAS,Idaho wishes to insure that it will have no
liability to the District,any individual,partnership or corpora
tion,which is a landowner in said District,or to any third party
for any injury,death or property damage,resulting from or with
respect to the District's irrigation system,including,without
limitation,those injuries,deaths or property damages,resulting
from or with respect to the District's irrigation system,located
I-*>
IS
upstream from that dam which is to be part of the A J Wiley Project,
caused as a result of or in any way related to the existence of
and/or action of the water in the pool created as a result of the
construction of the Wiley Dam;and,
WHEREAS,Idaho wishes to insure that,if the District
constructs a river pumping station specifically to serve only
/*.-
that land owned by the Ascuenas and Idaho,it will have no
-r
or
'inq^f *•:*
MHBiSi 's1.
wmm-
'mm B4™
¦¦.the proposed ^j.nunaatIo
i.
¦am
e ^inundation of
immmm
&
corporation,which is a landowner in said District or to any third
-s.,Si*-:1
is;..-¦¦¦¦.
$W~A
party for any injury,death or property damage,including,without
limitation,any environmental damage,arising out of or caused by
the removal of the Head End Siphon,including,without limitation,
the pipe,the support bridge and the piers,whenever and however
said piers are removed and that pipe to be removed on the East
bank of the Snake River.
!
:
*J
WHEREAS,Idaho wishes to obtain the use of all of the
District's water,for power generation purposes,through Idaho's
£"3 Lower Malad power plant and a portion of the District's water,
m
for power generation purposes,through its Bliss power plant.
Idaho also wishes to obtain the use of said water,for power
generation purposes,for any future hydro plants,which Idaho may
construct,on that stretch of the Snake River,lying between and
including the current locations,on the date hereof,of Idaho's
Lower Malad and Bliss power plants,including,without limitation,
the A J Wiley power plant,which future power plant or plants can
use all or any portion the District's water.
WHEREAS,Idaho proposes to make certain credits (herein-
3 after referred to as the "Credit Amount"),to the District's
irrigation accounts established for each of the five (5)river
;pumping stations that the District will construct or four (4)jif'-¦»ifmtheDistrictdecidesnottoconstructariverpumpingstation
specifically to serve only that land owned by the Ascuenas and
..Idaho,said Credit Amount to be given as compensation for the .use ¦
of the District's water for power generation purposes;and,1
';"'V*'"
WHEREAS,Idaho proposes a reduction of the Credit Amount .•
given to the District as compensation for the use of the District's
If the A J Wiley Project
*
;
water under the following circumstances.
i
slJ'-1AGREEMENT-4.
and if either of Idaho's Lower Malad or Blissisnotconstructed,
power plants,but not both,ceases to operate due to lack of
regulatory authority,the Credit Amount shall be reduced by that
percentage,which represents the ratio that the energy generation
gained at that power plant,which ceases to operate,bears to the
total energy generation gained at the Lower Malad and Bliss power
plants.Said energy generation gained was determined by computing
the energy generation gained by Idaho due to the use of the
District's water,for power generation purposes,pursuant to this
Agreement,under median water conditions,
is constructed,and if Idaho's Lower Malad power plant ceases to
ft3
--i
If the A J Wiley Project
operate due to lack of regulatory authority,then that reduction
of the Credit Amount,resulting from the loss of power generation
at Idaho's Lower Malad power plant,shall be reduced by that
percentage,which represents the ratio that the energy generation
gained by Idaho,as a result of the A J Wiley Project,bears to the
total energy generation gained by Idaho,as a result of the use of
the District's water,for power generation purposes,at Idaho's
Lower Malad,Bliss and A J Wiley power plants under median water
j
conditions;and§*2 ,
vW
¦
WHEREAS,Idaho proposes that the Credit Amount,given
as compensation,for the use of the District'stotheDistrict,
water shall,if the A J Wiley Project is not constructed,termi
nate when Idaho ceases to operate both its Lower Malad and Bliss
:i
power plants,due to lack of regulatory authority,and shall,if
the A J Wiley Project is constructed,terminate when Idaho ceases
to operate its Lower Malad,Bliss and A J Wiley power plants due
to lack of regulatory authority.
WHEREAS,the District proposes that the right of Idaho
:
7\rriffM-DMrn
to use the District's water,for power yenorution purposes,shuii
terminate when Idaho ceases to operate its Lower Malad,Bliss and
A J Wiley power plants due to lack of regulatory authority.
WHEREAS,the District proposes to use electric power
and energy obtained from Idaho for operating the District's
pumping installations.
NOW,THEREFORE,the parties hereto,in consideration of
the premises and mutual covenants and conditions herein contained,
agree as follows:
'V."
PART I
THE DISTRICT AGREES:
To immediately and completely remove before that1.
consideration,as hereinafter specified in Part II,Paragraph 1
of this Agreement,will be paid by Idaho to the District,the
District's Head End Siphon,as hereinafter specified,currently
crossing the Snake River at that location hereinbefore specified,
including,without limitation,the pipe and the support bridge,
which are part of said Head End Siphon,but excepting from this
immediate and complete removal,pursuant to the conditions herein
after specified in this same paragraph,those piers upon which the
The District agrees that if Idaho is
1
support bridge rests,
permitted to construct the A J Wiley Project,and if any govern
mental agency,either local,state or federal requires either the
partial or complete removal of said piers,to remove said piers:i
to the elevation and by whatever method said governmental agency
The District agrees that if Idaho is permitted torequires.
construct the A J Wiley Project,and no local,state or federal
agency requires the removal of said piers,to remove said piers,
;
to an elevation equal with Two Thousand,when Idaho so desires,
Said removalSevenHundredSeventeen(2,717)feet above sea level.
may be accomplished by whatever method the District desires,so
long as said method does not violate any local,state or federal
The District agrees that if prior to the i
law or regulation,
construction of the A J Wiley Project,or if the A J Wiley Project
is not constructed,if any governmental agency,either local,
state or federal,requires either the partial or complete removal
of said piers,to remove said piers to the elevation and by what
ever method said governmental agency requires,
agrees and acknowledges,by the execution of this Agreement,that
the consideration hereinafter stated in Part II,Paragraph 1 of
this Agreement,which Idaho will pay to the District,includes
payment for the removal of said piers,whenever,however and to
whatever elevation said 'piers are required to be or are in fact
'i
»;
&?¦
The District¦
removed,pursuant to the conditions hereinbefore specified in this
fsameparagraph.i
¦;
¦sToimmediatelyandcompletelyremove,before that2.
3 consideration as hereinafter specified in Part II,Paragraph 1
of this Agreement,will be paid by Idaho to the District,the
District's unused pipe on the East bank of the Snake River,which
pipe,connected with the Head End Siphon,crossing the Snake River.
Said unused pipe shall be removed up to an elevation equal with
i
8I
Two Thousand,Seven Hundred Fifty-two (2,752)feet above sea level.
That Idaho shall not be liable to the District,3 .
any individual,partnership or corporation,which is a landowner
in said District,or to any third party,including,without
limitation,any governmental agency,for any injury,death or
AGREEMENT -7 .
'property damage,including,without limitation,any environmental
damage or judgment,whatever its nature,arising from or resulting
because of an environmental lawsuit,which injury,death or property
damage arises out of or is any way related to the existence of and/
or removal of those piers upon which the support bridge of the
Head End Siphon rests.
That it will not use the Head End Siphon or that4.
portion of the canal upstream from the Wiley Dam site for trans
mission of the District's irrigation water during the existence
of this agreement.The District may install pipelines in the
canal in order to deliver water by pumping to lands upstream from
¦i
¦
the Wiley Dam site.
That the future expansion of irrigation services,
under the existing water rights of the District,shall be limited,
5 .
during the existence of this Agreement or any part hereof,to
One Thousand,Five Hundred (1,500)acres more than that land area
irrigated by the District in the year 1978,under the District's
Said One Thousand,Five Hundred (1,500)acreswaterrights.
shall,with the exception of Forty (40)acres,be irrigated only
i
:if!by water pumped from the Snake River downstream from the current
i=-'
i"*
1
I
The District,inlocation,on the date hereof,of the Bliss Dam.
the year 1978,irrigated Ten Thousand,Six Hundred Fifty (10,650)
acres .
That Idaho has no liability for failing to provide6.
electric service to anyone or all of the District's pumping
stations by a specific date,including,without limitation,the
start of the irrigation season in the year 1979,whatever the
reason for said failure including,without limitation,the
following :
AGREEMENT -8 .
failure to obtain the necessary ease
ments and rights of way,as shall be necessary
to enable Idaho to extend service lines or other
facilities to the District's pumping stations;
and
a)
failure to obtain and/or install such
equipment as is necessary in order to enable
Idaho to provide electrical service to the
District's pumping stations.
b)
To reimburse Idaho for all monies expended in
obtaining the •rights of way and easements necessary in order to
enable Idaho to extend service lines or other facilities to the
7 .
District's pumping stations.
To pay on demand,protect,defend,indemnify and8.
hold harmless Idaho and Idaho's officers,directors,shareholders,
employes,agents,contractors,and servants,and their successors
and assigns (the foregoing being herein referred to individually
as "Indemnitee"and collectively as the "Indemnitees"),from and
against all liabilities,claims,penalties,causes of action,
(including without limitation,attorney'ssuits,cost and expenses
fees and expenses)or judgments of any nature arising from or
i relating to (a)any injury,death or property damage to the
District,to any individual,partnership or corporation,which is
a landowner in said District or to any third party arising out of
the construction,operation,maintenance,use or existence of any
facilities of the District's irrigation system,including,without
i
limitation,any injury,death or property damage to the District,
any individual,partnership or corporation,which is a landowner
in said District or to any third party resulting from or with
respect to the District's irrigation system located upstream from
the Wiley Dam caused,as a result of the existence of and/or action
i
i
of the water in the pool created as a result of the construction of
i
i
1
q
I the Wiley Dam;(b)any injury,death or property damage,including,
without limitation,any environmental damage or judgment,whatever
its nature,arising from or resulting because of an environmental
lawsuit,to the District,any individual,partnership or corpora
tion,which is a landowner in said District,or to any third party,
including,without limitation,any governmental agency,which
injury,death or property damage arises out of or is in any way
related to the removal of the Head End Siphon,as hereinbefore
specified,and to the existence of and/or removal of those piers
upon which the support bridge of the Head End Siphon rests;(c)any
injury,death or property damage to the District,any individual,
partnership or corporation,which is a landowner in said District
or to any third party resulting from Idaho's failure to provide
electric service to any one or all of the District's pumping
stations by a specific date,including,without limitation,the
start of the irrigation season in the year 1979;and (d)if the
District constructs a river pumping station specifically to serve
only that land owned by the Ascuenas and Idaho,any injury,
damage or costs to the District,any individual,partnership or
corporation,which is a landowner in said District (including,
without limitation,the Ascuenas or their heirs,successors,and
assigns)or to any third party,resulting from or with respect to
the proposed inundation or the inundation of the District's pumping
station,serving the Ascuenas and Idaho or their heirs,succes
sors and assigns,said inundation caused as a result of or in any
way related to the creation of the Wiley pool.
suit or proceeding arising from or relating to any of the fore
going is brought against any indemnitee,the District shall,at
the District's expense,resist and defend such action,suit or
HI
j
If any action,
i nAr!OT?T7M T7ATT
proceeding or cause the same to be resisted and defended by
counsel,designated by Idaho,and acceptable to the Indemnitee
Any indemnitee shall have the right to employandtheDistrict.
separate counsel for any such action,suit or proceeding and to
participate in the defense thereof,but the employment of such
counsel shall not be at the District's expense unless (i)the
employment of such counsel has been specifically authorized by the
District in writing or (ii)the District shall not employ counsel
to have charge of the defense of such action,suit or proceeding,m
or (iii)there is a conflict of interest which would prevent
counsel for the District from representing both the District and
the Indemnitee,in any of which cases the District shall not have
the right to direct the defense of such action on behalf of the
Indemnitee,it being understood that,regardless of whether such
counsel is representing all of the parties entitled to the
indemnification hereunder,the District shall not be liable under
(iii)above,for the fees and expense of more than oneclause
The Districtseparatecounsel,who shall be approved by Idaho.
¦
shall not be liable to indemnify any Indemnitee for any settlement
of any such action,suit or proceeding effected without the
*-¦
The obligations of the District hereunderDistrict's consent.
shall survive this Agreement and shall be binding on the succes
sors and assigns of the District.
That Idaho shall not be liable to the District,9 .
or any individual,partnership or corporation,which is a landowner
in said District,or to any third party for any injury,death or
property damage,resulting from or with respect to the District's
irrigation system,including,without limitation,those injuries,
!
11.AGREEMENT
deaths or property damages,-resulting from or with respect to the
District's irrigation system,located upstream from the Wiley Dam,
caused as a result of or in any way related to the existence of
and/or action of the water in the pool created as a result of the
Wiley Dam.
That Idaho shall have the non-consumptive use10.
of all of the District's water,for power generation purposes,
through Idaho's Lower Malad power plant and a portion of the
District's water,for power generation purposes,through its
m Idaho also shall have tne non-consumptive useBlisspowerplant.
of the District's water,for power generation purposes,for any
future hydro plants Idaho may construct on that stretch of the
Snake River,lying between and including the current locations,
on the date hereof,of Idaho's Lower Malad and Bliss power plants,
including,without limitation,the A J Wiley power plant,which
future power plant or plants can use all or any portion of the
District's water for power generation purposes.
To divert its water,during the irrigation season
!
11.
¦1*only and in such a manner,that to the extent the presently
existing capacity of Idaho's Lower Malad and Bliss power plants
can use the District's water,for power generation purposes,
water other than that diverted by the District for irrigation,
j-j.
¦.1
during the irrigation season only,and being applied directly on
that land upstream from a point opposite the District's Black
Mesa River pumping station,will be available to Idaho for use
at Idaho's Lower Malad and Bliss power plants and for any future
hydro plants Idaho may construct,on that stretch of the Snake
River,lying between and including the current locations,on
i
AGREEMENT -12 .
the date hereof,of Idaho's Lower Malad and Bliss power plants,
including,without limitation,the A J Wiley power plant,which
future hydro plant or plants can use all or any portion of the
District's water for power generation purposes.
To close and screw down its gate,in the flume12.
located at that point immediately adjacent to Idaho's point of
diversion,off the flume,for its Lower Malad power plant,
gate shall be closed in such a manner so as to insure that there
Said
will be no leakage of water.
That Idaho shall be permitted to maintain its13.
A J Wiley Project boundary,including,without limitation,the
water level in the Wiley pool,at points within the District's
lands and/or easements,including,without limitation,that ease
ment heretofore occupied by the Head End Siphon or any pipe
\
connecting thereto on either the East or West bank of the Snake
if said lands or easements fall within the A J Wiley ProjectRiver,
boundary,as hereinafter defined,and/or any future amendment
Pursuant to 18 CFR §4.41,Exhibit K (1)(iii),"projectthereto.
t
boundary"is defined as follows:
t .
'.-S I
e-l
V •
"(iii)Excep.t with respect to lands necessary
or appropriate for recreation purposes,for
which it is recognized that additional project
area will generally be required,the project
boundary shall be no more than 200 feet
(horizontal measurement)from the exterior
margin (in general,high-water level)of reser
voirs,nor shall the width of the project area
for canals,ditchs,pipelines,transmission
lines,roads,and other so-called continuous
structures exceed 200 feet,unless satisfac
tory reasons are given to the contrary."
Not to oppose Idaho in its pursuit of regulatory
permission to construct the A J Wiley Project and the Dike
Project on the Snake River and to support,by a favorable
14 .
lir.DCPMPMT -17
resolution of the Board of Directors of the District,any support
reasonably requested by Idaho in connection with its attempt to
seek regulatory permission to construct said projects;and
To support Idaho in its efforts to obtain a renewal
or extension of its license or a new license for its Bliss hydro
15.
electric generating plant,when the license for said plant termi
nates and to support Idaho in its current efforts to obtain a
new license for its Lower Malad hydro electric generating plant,
•Vi-V
5f*i
¦*«'J
said support to be in the form of a favorable resolution of the
Board of Directors of the District and any other support reasonably
requested by Idaho;and
To seek the authorization and approval of the16.
Board of Directors of the District to enter into this Agreement,
said authorization and approval to be in the form of a resolution,
which resolution shall specify,by name or office,those officers
and directors of the District authorized to sign this Agreement
on behalf of the District;and
To reimburse Idaho for those costs,which Idaho17.3
will incur in order to serve the District's pumping plants,
?>>.»!
m including,without limitation,line extensions,substation costs
This total cost,and thus theandotherrelatedfacilities.
amount of the reimbursement payable to Idaho,by the District,
shall be reduced by three (3)times that amount of money,which
represents the difference between the total guaranteed annual
revenue Idaho would receive from the District,based upon the
applicable rate schedule in effect on February 1,1979,and the
sum of One Hundred Eighty-five Thousand,Seven Hundred Dollars
($185,700.00).
To make application to the Idaho Department of
Water Resources to change its point of diversion,from that point
on the Malad River,where said water was diverted,during the
calendar year 1978,or if permissible under the Idaho law,to
obtain supplemental points of diversion to those points on the
Snake River,which points correspond with the location of the
District's five (5)river pumping stations or four (4)river
pumping stations if the District decides not to construct a
river pumping station specifically to serve only that land owned
by the Ascuenas and Idaho,which locations have been reviewd and
18 .
approved by Idaho.
That it will not sell,transfer or otherwise19.
the right to which the District has todivestitselfofwater,
divert for irrigation purposes,as of the date hereof,if said
sale,transfer or divesture would,in any way affect Idaho's
right to the use of the District's water,
purposes,pursuant to this Agreement,at Idaho's Lower Malad and
for power generation
Bliss power plants and at any future hydro plant or plants Idaho1,
may construct,on that stretch of the Snake River,lying between
and including,the current locations,on the date hereof,of
Idaho's Lower Malad and Bliss power plants,including,without
limitation,the A J Wiley power plant.
:•,
If the District constructs a river pumping station20.
specifically to serve only that land owned by the Ascuenas and
Idaho,Idaho shall not be liable to the District,any individual,
partnership or corporation,which is a landowner in said District |
I(including,without limitation,the Ascuenas or their heirs,
successors and assigns),or to any third party,resulting fromi
:
I
or with respect Lo Lho proposed Inundation or Lhe inundation oC
the District's pumping station serving the Ascuenas and Idaho or
their heirs,successors and assigns,said inundation caused as a
result of or in any way related to the creation of the Wiley pool.
PART II
IDAHO AGREES:
To pay to the District,upon completion of construc
tion of the District's pumping stations and related facilities,and
upon removal of the Head End Siphon and unused pipe,as herein
before specified in Part I,Paragraphs 1 and 2 of this Agreement,
1.
';*"«-f
m
and upon obtaining evidence of the necessary approvals and orders,
as hereinafter specified in Part III,Paragraphs 7 and 8 of this
Agreement,the sum of One Million Dollars ($1,000,000.00)in
V
consideration of the covenants and obligations of the District.
To credit to the District's five (5)irrigation2.
accounts or four (4)irrigation accounts,if the District decides
not to construct a river pumping plant specifically to serve only
'
that land owned by the Ascuenas and Idaho,the Credit Amount.Said
accounts are the only accounts subject to this Agreement.Said credit
shall be made March 1 of each year,beginning with the calendar year
1979,during the life of the Energy portion of this Agreement,or any
reduction thereof,as hereinafter defined in Part III,Paragraphs
m
3,4 and 5 of this Agreement,as consideration for the use of the
District's water,for power generation purposes,the sum of One
Hundred Eighty-five Thousand,Seven Hundred Dollars (.$185,7,00.00)
(hereinbefore and hereinafter referred to as the "Credit Amount").
This Credit Amount shall be proportionally allocated to each of
the District's five (5)river pumping stations or four (4)river
pumping stations,if the District decides not to construct a
river pumping station specifically to serve only that land owned
by the Ascuenas and Idaho,which accounts are the only accounts
subject to this Agreement.Said allocation to be represented by
that percentage that the horsepower of each pumping station
bears to the total horsepower of the five (5)river pumping
stations or four (4)river pumping stations,if the District§i|decides not to construct a river pumping station specifically to.*•i
serve only that land owned by the Ascuenas and Idaho.In the
event the Idaho Public Utilities Commission orders an adjustment
in the rate or charges of that rate schedule,applicable to the
District's river pumping installations,said Credit Amount shall
be increased or decreased by that percentage,which is determined
to be the average for all Idaho customers under said rate schedule.
This adjustment will be made effective in accordance with said
Commission Order making such adjustment.In the event any
¦I regulatory agency adjusts,either by increasing or decreasing any
applicable tax refund,the above Credit Amount will be decreased'¦"i-5"J
by an amount,which reflects the tax refund increase as to the
Credit Amount,or the above Credit Amount will be increased by an
amount,which reflects the tax refund decrease as to the Credit
When an adjustment is required because of a rate or taxAmount.
refund change,an addendum shall be executed by the parties hereto
reflecting the change in the Credit Amount.
As currently planned,and if approved,that dam,
which will be part of the A J Wiley Project,shall be constructed
at a point in the East sides of Lots 3 and 8,Section 12,Town-
3.
ship 6 South,Range 12 East,Boise Meridian,in Gooding and
Twin Falls Counties,Idaho.Attached hereto and identified as
Exhibit "A"is a map which reflects the location of said dam.
By virtue of its attachment and by this reference,said Exhibit
"A"is hereby made a part of this Agreement.
That the District may,if it so desires,construct
a pumping plant upstream from the proposed site of the Wiley Dam,
to pump water from the Snake River to serve those lands,served
by water supplied by the King Hill Irrigation District,during the
calendar year 1978,which lie between the Head End Siphon and the
proposed site of the Wiley Dam,and are owned by the Ascuenas
and Idaho,on the express and strict condition that,if such
pumping plant is constructed at or below the high water line of
the Wiley pool,Idaho shall have no responsibility to move or pay
V „
for the moving of said pumping plant and shall not be liable for
damages to said pumping plant,if said plant is inundated by the
Wiley pool,and further that Idaho may use its flooding easements
for the Wiley pool regardless of whether such pumping plant is at
or below the high water line.
4.
¦'"1
.aJ
J
PART III
THE PARTIES AGREE:
That the proposed sites and construction plans for1.
the District's five (5)river pumping plants,or if the District
decides not to construct a river pumping station specifically to
serve only that land owned by the Ascuenas and Idaho,then the
proposed sites and construction plans for the District's four (4)
river pumping plants,as selected by the District shall be presented
to Idaho for Idaho's approval,which approval shall not be unreason-J
AGREEMENT -18 .
ably conditioned or withhold,and which approval or denial shall be
given as promptly as is reasonably possible.
as to enable Idaho to evaluate the feasibility and practicability
of constructing those facilities necessary to enable Idaho to
deliver electrical energy to the District's pumping plants.
That they are still bound by the rights,duties,
obligations and limitations,as specified in that February 9,
1909 Agreement.
This is necessary so
2 .
---I I That the Energy portion of this Agreement is the
obligation of Idaho to credit to the District's five (5)irriga
tion accounts or four (4)irrigation accounts,if the District
3.
decides not to construct a river pumping plant specifically to
serve only that land owned by the Ascuenas and Idaho,that Credit
Amount,as hereinbefore specified in Part II,Paragraph 2 of this
Said Credit Amount is representative of the value ofAgreement.
Fourteen Million (14,000,000)kilowatt hours,determined pursuant
to the applicable rate schedule,as of March 1 of each calendar
year,when said Credit Amount is credited or as thereafter adjusted,
Said Credit
Amount may be reduced pursuant to Part III,Paragraphs 4 or 5 of
this Agreement or terminated pursuant to the provisions hereinafter
,1
i
aa pursuant to Part II,Paragraph 2 of this Agreement.
The obligation of Idaho to creditstatedinthissameparagraph.
said Credit Amount to the District's five (5)irrigation accounts
or four (4)irrigation accounts,if the District decides not to
construct a river pumping plant,specifically to serve only that
land owned by the Ascuenas and Idaho,shall terminate,if Idaho
does not construct its A J Wiley Project,when Idaho ceases to
operate both its Lower Malad and Bliss power plants due to lack
If Idaho does construct i ts A J Wiley
of regulatory authority.
Project,then Idaho's obligation to credit said Credit Amount
shall terminate when Idaho ceases to operate its Lower Malad,
Bliss and A J Wiley power plants due to lack of regulatory
Said termination shall not entitle Idaho to a refund,
authority.
rebate or reimbursement of any portion of said sum of One Million
($1,000,000.00),to be paid by Idaho to the District.
Dollars
That the obligation of the District to allow Idaho
the use of the District's water,for power generation purposes,and the
obligation to cease use of the Head End Siphon and the canal,
shall terminate when Idaho ceases to operate its Lower Malad,
4 .T.
Bliss and A J Wiley power plants due to lack of regulatory
authority.
If Idaho does not construct its A J Wiley Project,
and if Idaho is not issiied a new license,
5 .
authorizing power
generation at Idaho's Lower Malad power plant,which power plant
ceases to operate due to lack of regulatory authority,or Idaho's
license,authorizing power generation at its Bliss power plant
.1
terminates and no new license is issued,which power plant then
"i ceases to operate due to lack of regulatory authority,then that
Credit Amount,specified in Part II,Paragraph 2 of this Agreement,
shall be reduced by that percentage,which represents the ratio
that the energy generation,gained as a result'of the use of the
District's water for power generation,under median water condi-
;!tions,at that power plant,which ceases to operate,bears to
the total energy generation gained as a result of the use of the
District's water for power generation,under median water condi-
at Idaho's Lower Malad and Bliss power plants.If it is
tions ,
the Lower Malad power plant which ceases to operate,due to lack
of regulatory authority,then the Credit Amount shall be reduced
If it is the Bliss power plantbySeventy-two percent (72%).
which ceases to operate,due to lack of regulatory authority,
then the Credit Amount shall be reduced by Twenty-eight percent
(28%).
If Idaho is not issued a new license,autho-6.
»
rizing power generation at its Lower Malad power plant,which
then ceases to operate,due to lack of regulatory authority,1z-
iandifIdahoconstructstheAJWileyProjectandbeginsthe;.2
generation of electricity,either before or after Idaho's Lower
due to lack of regulatoryMaladpowerplantceasestooperate,
authority,then that reduction of the Credit Amount by Seventy-
two percent (72%),resulting from loss of power generation,at
Idaho's Lower Malad power plant,as hereinbefore specified in
Part III,Paragraph '5 of this Agreement,shall be reduced by
Seventy and eight-tenths percent (70.8%),which is representative
of the ratio that the energy generation,gained by Idaho as a
¦
t :
result of the A J Wiley Project,bears to the total energy gene
ration,gained by Idaho as a result of the use of the District's
water,for power generation purposes,under median water condi
tions,at Idaho's Lower Malad,Bliss and A J Wiley power plants.
The reduction of the initial reduction of Seventy-two percent
?-7-i
»
1.
(72%)by Seventy and eight-tenths percent (70.8%),results in an
effective reduction of the Credit Amount by Fifty-one percent
.f
(51%).
That this Agreement,and its rights,duties,and7.
obligations are subject to the approval of the Board of Directors
Should this Agreement not be approved by theofbothparties.
i
Board oC Directors of both parties,then this Agreement and its
rights,duties and obligations are null and void and of no further
force or effect.
That this Agreement and its rights,duties and
obligations are subject to the approval of any state or federal
regulatory agencies,having jurisdiction over Idaho on this
matter,including,but not limited to,the Idaho Public Utilities
Commission and the Federal Energy Regulatory Commission.Should
this Agreement not be approved,by an Order satisfactory to Idaho,
in its terms and conditions by all of the state or federal regu
latory agencies,having jurisdiction over Idaho on this matter,
then this Agreement and its rights,duties and obligations are
null and void and of no further force or effect.
8.
This Agreement,and its rights,duties and obli
gations shall be binding upon the parties hereto and their succes-
9.
sors and assigns.!
1
The rights,duties,and obligations of the parties10.i
hereunder are intended to be several and not joint or collective,
and neither of the parties shall be jointly or severally liable
for the acts,omissions or obligations of the other.
''-
Nothing
herein contained shall be construed to create an association,
joint venture,partnership or impose a partnership duty,obliga
tion or liability.
That all electric power and energy used by the11.
District shall be subject to the relevant rates,rules and
regulations of Idaho,approved as of the date hereof,or as
they may be hereafter modified and approved by the Idaho Public
Utilities Commission.
The District:wiil not waste water,the right to12.
which the District has to divert and is diverting for irrigation
purposes,wherever and however said wasting is occurring.Idaho 's
only remedy,if the District is wasting water,is Specific Perfor-•i
mance of that duty and obligation of the District to not waste
water .
That the District shall build only five (5)river
pumping stations or four (4)if the District decides not to
13 .
>v;
construct a river pumping plant specifically to serve only that
land owned by the Ascuenas and Idaho.Any additional pumping
stations or any increase in the horsepower of any of the five
(5)river pumping stations or four (4)if the District decides
not to construct a river pumping plant specifically to serve
only that land owned by the Ascuenas and Idaho,over and above
the original installed horsepower,shall not be subject to this
Agreement and any rights,obligations and duties hereof.It is
agreed by both parties hereto that Idaho will attach hereto,
marked as Exhibit "B",Idaho's Work Order maps,which will reflect
the location and horsepower of each of the District's river
..»¦
.t 'r „pumping plants,as reviewed and approved by Idaho,pursuant to
Part III,Paragraph 1 of this Agreement.By virtue of its attach
ment and by this reference,Exhibit "B"is hereby made a part of
this Agreement.Any additional facilities requested by the
District or any individual,partnership or corporation,which is
a landowner in said District,shall be handled pursuant to the
applicable extension policy of Idaho,as approved by the Idaho
Public Utilities Commission.
IN WITNESS WHEREOF ,the parties have hereunto caused
r
j
their names Lo be subscribed by Llieir officers first LhereunLo
duly authorized by resolution of their Boards of Directors,as
of the day and year herein first above written.
KING HILL IRRIGATION DISTRICT
(SEAL)By
GEORGE LA
Chairman
ATTEST:
SB
•*-ZJ-.
By
Barbara P c
Secretary
IDAHO POWER COMPANY
(SEAL)By
JAMES E BRUCE
Pr&sadent
ATTEST:
Byt
PAUL L JkUftEOUI
Secretary \J
f
\
)STATE OF IDAHO
:ss
)COUNTY OF ELMORE
On this day of >1979,before me,
the undersigned,a Notary Public ,in and fox said State,
personally appeared GEORGE LARSEN and BARBARA P CRANE,known to
me to be the Chairman and Secretary,respectively,of KING HILL
IRRIGATION DISTRICT,the irrigation district that executed the
foregoing instrument,and acknowledged to me that such irrigation
district executed the same.
IN WITNESS WHEREOF,I have hereunto set my hand and
affixed my official seal,the day and year in this certificate
first above written.I&L.%
-I-t:
caJ(NOTARIAL SEAL)
Neytary Public for Idaho
Re^si/ding at:
STATE OF IDAHO
r SS
)COUNTY OF ADA
nA.day of htl ,1979,before me,
(/for said State,
On this qZ-'
the undersigned,a Notary Public,in and
personally appeared JAMES E BRUCE and PAUL L JAUREGUI ,known
to me to be the President and Secretary,respectively,of IDAHO
POWER COMPANY,the corporation that executed the foregoing
instrument,and acknowledged to me that such corporation executed
the same .
X.v-l
rJ
-*V
IN WITNESS WHEREOF,I have hereunto set my hand and
affixed my official seal,the day and year in this certificate
first above written.
I
(NOTARIAL SEAL)
;i Notary Public fo^"Idaho u
Residing at:
J
!

BEFORE THE

IDAHO PUBLIC UTILITIES COMMISSION

CASE NO. IPC-E-23-21

IDAHO POWER COMPANY

ATTACHMENT 2

King Hill Irrigation District Agreement
April 1979
AGREEMENT FOR DELIVERY OF POWER AND ENERGY
TO KING HILL IRRIGATION DISTRICT
IDAHO POWER COMPANY
KING HILL IRRIGATION DISTRICT
THIS AGREEMENT,Made this 11 day of Apr i 1 ,1979,by and between
IDAHO POWER COMPANY,a corporation duly qualified and authorized to do business
in the State of Idaho,hereinafter referred to as "Company,"and KING HILL IRRI
GATION DISTRICT,organized,existing and operating under the laws of the State
of Idaho,and having its principal place of business in King Hill,Idaho,herein
after referred to as "Customer";
WITNESSETH:
WHEREAS,the Customer owns and operates an irrigation system for the
purpose of delivery of water from the Snake River to the lands of benefited
landowners within King Hill Irrigation District;and
WHEREAS,the Customer and Company have entered into an Agreement dated
February 5,1979,providing in part that Company will credit an amount each year
to certain irrigation pumps of Customer;and
WHEREAS,the Idaho Public Utilities Commission approved the Agreement
dated February 5,1979,by Order No 1AA39;and
the parties desire to further specify those terms and con-WHEREAS,
ditions under which Company would serve the pump stations required under the
February 5,1979 Agreement.
NOW,THEREFORE,in consideration of the mutual covenants herein set
forth,the parties hereto agree as follows:
The term of this Agreement shall extend from the date of execution ofI.
-2-
this Agreement to March 1,1989,which term shall be automatically renewed and
extended from year to year thereafter unless or until terminated by Customer
giving written notice to Company twelve (12)months in advance of the intended
date of termination,or this Agreement will terminate concurrently with the
energy portion of the Agreement between the parties dated February 5,1979,which
entire Agreement by reference is made a part of this Agreement as if it were ex
pressly set forth herein.
Customer agrees to purchase,receive and pay for,and Company agrees2.
to supply electric service required for Customer's irrigation operations at or
in Elmore and Gooding Counties,State of Idaho,up to the amountnearKingHill
of horsepower herein set forth,in the form of three-phase,alternating current
at approximately 60 cycles per second and 480 and 2,400 volts,in accordance
with and subject to the Company's Standard Rules and Regulations as now or here
after in.effect and on file with the Idaho Public Utilities Commission,and at
All payments for service shall be made attherateshereinafterprovidedfor.
the Company's office at Glenns Ferry,Idaho.
(a)All electric power and energy,up to 10,000 horsepower,shall be3-
supplied and billed in accordance with the Company's applicable irrigation
pumping service rate schedule.
(b)Points of delivery under this Agreement to be metered and billed
separately are as follows:
Pump
Site No Account NoHorsepower%of Total Vol tage Location
Lot Sec TS R
IT 12 6S 12E
9 6S 1 1 E
12 5S 10E
28 5S 10E
480 1935-002087-0
1935-002084-0
1 93 5-002085-0
1935-002086-0
1121,200.
5,100 2,400 3 251
480800 68 3
42,400 6292,900
1 00?,Total 10,000
-3-
ln the event Customer desires,subsequent to commencement of service at the above-
mentioned points of delivery,to move the location or change the size of a pump
installation,Customer shall pay any costs incurred by Company for such change.
(c)The minimum monthly charge shall be the Demand Charge for the
current month's maximum demand,but not less than the minimum expressed in the
applicable irrigation pumping service schedule for each delivery point for any
month that service is connected.
(d)The Customer's minimum annual charge shall be the higher of the
fo 1 1 owi ng :
(i)An amount sufficient to make the total charges for
service under this Agreement for the twelve-month period,ending
February 28 of each year,equal to $220,100.00.
(ii)An amount sufficient to make the charge for service
under this Agreement for the twelve-month period,ending
February 28 of each year,equal to $10.00 per horsepower at
any one point of delivery shown in paragraph 3(b).
The minimum charges set forth above shall apply during the term of this Agreement.
A.It is mutually understood and agreed between the parties that:
(a)Customer agrees to pay a one-time charge for the cost difference
between underground construction and equivalent overhead construction on that
portion of the line extensions to serve pump sites II 2 and ttb,which difference
is in the amount of Four Thousand Six Hundred Forty-two and No/100 Dollars
($^,6^2.00)and is not subject to refund.
(b)Customer further agrees to pay a one-time charge of Two Hundred
Thirty-one Thousand Nine Hundred Sixty-four and No/100 Dollars ($231,96^.00),
which is not subject to refund and which represents the costs of line extensions
and substations incurred by Company to provide the electric service to Customer's
-it-
pumps in paragraph 3(b)reduced by three (3)times the difference between the
minimum annual charge in paragraph 3(d)(i)hereof and the Credit Amount.
(c)Company,by March 1 of each year,shall credit pumping accounts
of Customer set forth in paragraph 3(b)hereof by the amount of $185,700.00
(the Credit Amount adjusted in accordance with Part 11 Paragraph 2 of Agreement
between the parties dated February 5,1979)allocated between accounts by the
percent of total horsepower shown in column 2 of paragraph 3(b).
(d)Customer shall pay in advance each year,unless otherwise mutually
agreed in writing,the estimated full season billing for each pump less the appli
cable percentage of the Credit Amount,which advance will be subject to adjust
ment at the end of the season based on the actual season's billing.
(e)Company will not be required to energize facilities for operation
of pumps until the total estimated season's billings,less the Credit Amount,has
been received from Customer.
During the term of this Agreement and any renewals and extensions5.
hereof,the Customer agrees to and will purchase from the Company all electric
power and energy required for its operations at the above location,such power
and energy up to the amount hereinabove set forth in paragraph 3(b)to be
supplied and paid for as set forth in paragraph 3(a)above.It is mu tua 1 1 y
understood and agreed that the amount of electric power the Company is to provide
under this contract is expressly limited to the amount of horsepower as set forth
paragraph 3(b).i n
6.terms and conditions of service set forth orThisAgreementandrates,
incorporated herein,and t he respective rights and obligations of the parties
hereunder,shall be subject to valid laws and to the regulatory authority and
-5-
orders,rules and regulations of Lhe Idaho Public Utilities Commission and such
other administrative bodies having jurisdiction.Nothing herein contained shall
be construed as limiting the Idaho Public Utilities Commission from changing any
rates,charges,classification or service,or any rule,regulation or conditions
relating to service under this Agreement,or construed as affecting the right
of the Company or the Customer to unilaterally make application to the Commission
for any such change.
is understood and agreed that the initial date of delivery of power7.I t
is subject to the Company's ability to obtainandenergyunderthisAgreement
required labor,materials,equipment,satisfactory rights of way and comply with
government regulations,and that Company has no liability for failing to provide
electric service as stated in that Agreement between the parties,dated February 5,
1979.
KING HILL IRRIGATION DISTRICT
£
/>S A /r.
''fT/L
Attest
f/
IDAHO POWER COMPANY
By
Jent
Attest
A )
A (CUiAje.
U i I nessyi/jM
I
i
;
t

BEFORE THE

IDAHO PUBLIC UTILITIES COMMISSION

CASE NO. IPC-E-23-21

IDAHO POWER COMPANY

ATTACHMENT 3

First Amendment to February 1979
King Hill Agreement

BEFORE THE

IDAHO PUBLIC UTILITIES COMMISSION

CASE NO. IPC-E-23-21

IDAHO POWER COMPANY

ATTACHMENT 4

Second Amendment to February 1979
King Hill Agreement

BEFORE THE

IDAHO PUBLIC UTILITIES COMMISSION

CASE NO. IPC-E-23-21

IDAHO POWER COMPANY

ATTACHMENT 5

First Amendment to April 1979
King Hill Agreement